If you are contemplating filing for bankruptcy in Virginia, take the time to learn about the state’s current bankruptcy laws. This will help you know what to expect from the process.

Bankruptcy Exemptions

Virginia bankruptcy laws outline certain exemptions offered to all who file bankruptcy in the state. Exemptions are specific properties that you will not have to give up to the courts through the bankruptcy process. Exemptions in Virginia are as follows:

• Your home, provided you do not have an equity balance of more than $5,000 plus $500 per dependent, with the amount increasing to $10,000 for owners 65 years old or older
• Up to $2,000 for your vehicle
• Up to $5,000 for family portraits and heirlooms
• Up to $1,000 for clothing
• Family Bible
• Burial plot and up to $5,000 for a pre-need funeral contract
• Wedding and engagement rings
• Prescription health aids
• Pets
• Up to $5,000 for furniture, appliances, rugs, sewing machines, cooking utensils, plates, and eating utensils.
• Up to $1,000 for farming equipment including two plows, one drag, one harvest cradle, one rake, one pitchfork, two iron wedges, fertilizer, and fertilizer material
• Up to $3,000 for additional farming equipment, including two plow animals with gear, wagon or cart, and a tractor.
• Up to $10,000 for tools of the trade, including vehicles
• Military gear and uniforms
• Proceeds from wrongful death or personal injury cases
• Public employee pensions
• ERISA-qualified pension benefits
• Group life insurance benefits
• Cooperative life insurance benefits
• Industrial sick insurance benefit
• Burial society benefits
• AFDC and aid to the blind, disabled, and aged
• Fraternal societies benefits
• Up to $2,000 in a special exemption for disabled veterans
• Public compensation programs
• 75 percent of unpaid wages

If you wish to keep your vehicle and it qualifies under these exemption laws, but you still have a balance on the loan, you must reaffirm the debt with your lender within 45 days of the 341 meeting.

Chapter 7 Bankruptcy Information

Most who file for bankruptcy in Virginia wish to cancel out their debts and start over. To do this, you must file Chapter 7, which requires you to pass a means test. Your income will be compared to the median income level in the state, and if you make at or below this, you can file Chapter 7.

Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy works for those who cannot file Chapter 7. Under Chapter 13 protection, you must try to repay your debts over a period of three to five years. After that time, remaining debts are discharged.